Pro and con: Insurance companies take a lot of risk on Texans; Insurance companies are just greedy

Steve Blow rightly advocates that Texans consider saving money by shopping around for a homeowners insurance company. But consumers can, and often do, consider other factors, including coverage, products, options, stability and customer service.

In a competitive market, price is important but not the only consideration when choosing an insurance product.

Further, insurers cannot “set whatever rates they like” in Texas. Insurance companies assume risk to operate in Texas, where costs are driven by some of the country’s most severe weather. Insurers often operate at a loss; over the past five years, insurers statewide paid out $1.12 in claims for every $1 in premium collected.

Because insurers compete, they also take risks when deciding what to charge. Set rates too high, they risk losing business; set rates too low, they risk dropping below financial levels required to do business in Texas. A healthy insurance market includes companies making decisions independently to balance rate, financial strength, coverage and service.

Blow is right to encourage consumers to explore their options in Texas’ competitive market, but he is wrong to entertain a step back to one-size-fits-all regulation.

Ms. Trollinger, a State Farm agent, says she feels “a little beat up.” Maybe she should feel that way, considering she works in one of the most corrupt industries of all time. I personally would rather live next door to a serial killer than anyone who works for the insurance industry.

Her saying “you get what you pay for” shows how out of touch the insurance industry is with reality. They lower coverage and raise prices, then tell us that if you pick the cheaper policy and it doesn’t cover anything, then tough luck to us.

Jodie Pennington, Murphy

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